ORLANDO - Laser Photonics Corporation (NASDAQ: LASE), a developer of industrial laser systems, today announced a private placement agreement with institutional investors, securing $3.0 million in gross proceeds. The funds, accruing before deductions for fees and other expenses, are earmarked for working capital and general corporate purposes.
Under the terms of the agreement, 1,500,000 units, including pre-funded units, will be issued. Each unit comprises a share of common stock or a pre-funded warrant, plus a common warrant exercisable for one share at $4.34. These warrants can be exercised six months post-issuance or upon shareholder approval and will expire 5.5 years from their issue date.
The transaction is slated for closure around August 19, 2024, pending standard closing conditions. Aegis Capital Corp. is the exclusive placement agent, while CM Law PLLC and Kaufman & Canoles, P.C. provide legal counsel to the company and Aegis, respectively.
The securities sold through this private placement are exempt from registration under the Securities Act of 1933, as amended, and are unregistered at the federal and state level. As such, they may only be sold in compliance with registration or specific exemptions. In line with a registration rights agreement, Laser Photonics will file for resale of the common stock and shares from warrants with the SEC.
Laser Photonics is recognized for its disruptive approach to the sand and abrasives blasting markets, offering laser-based solutions for surface cleaning and other industrial applications. Their technologies are utilized by major manufacturers across various industries, including aerospace and automotive.
This press release is informational and does not constitute an offer to sell or a solicitation of an offer to buy securities. It is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those projected.
"In other recent news, Laser Photonics Corporation has been making significant strides in its operations. The company reported a notable 673% growth in its fourth-quarter revenue for 2023, reaching $0.8 million, primarily driven by robust sales in CleanTech products. Furthermore, the company managed to reduce its net losses from $3 million to $0.4 million.
Laser Photonics secured an order for two of its laser machines from a major global oil and gas producer, marking the company's further expansion into the energy sector. The company also teamed up with Boston Engineering Corporation to enhance autonomous robots with advanced laser technology for the naval defense industry.
Additionally, Laser Photonics and its subsidiary Fonon Technologies have introduced the visual concept of their Laser Shield Anti-Drone System (LSAD), designed to counter unauthorized drone activity. The LSAD project is advancing through developmental stages after successful early testing.
Lastly, Laser Photonics unveiled its MarkStar Handheld VIN for the automotive industry, a product designed to enhance vehicle part traceability. The company anticipates sales of at least $1.1 million following its recent Product Roadshow. These are some of the recent developments at Laser Photonics Corporation."
InvestingPro Insights
Laser Photonics Corporation's recent private placement agreement to secure $3.0 million in gross proceeds is a strategic move aimed at bolstering its working capital and supporting its general corporate initiatives. InvestingPro data and tips provide a deeper understanding of the company's financial health and market performance.
InvestingPro Data highlights that the company holds a market capitalization of $39.92M, indicating its size within the industry. Despite not being profitable over the last twelve months, as reflected by a negative P/E ratio of -5.31, the company has demonstrated a robust revenue growth rate of 19.27% over the last twelve months as of Q1 2024. This growth is complemented by an impressive gross profit margin of 60.64%, showcasing the company's ability to maintain profitability on its core products and services.
InvestingPro Tips reveal that analysts are optimistic about Laser Photonics' sales growth in the current year, which aligns with the company's revenue growth momentum. Additionally, the company's stock has experienced a high return over the last year, with an 84.18% price total return, signaling strong investor confidence and market performance.
Furthermore, the company's liquid assets exceed its short-term obligations, which is a positive sign of financial stability and may reassure investors of the company's ability to manage its short-term liabilities effectively.
Investors seeking additional insights can find more InvestingPro Tips for Laser Photonics Corporation at https://www.investing.com/pro/LASE, which includes a total of 12 tips to help make informed investment decisions. These tips provide a comprehensive analysis of the company's financial metrics, market valuation, and growth prospects.
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